There are lots of 0% offers in the market, but that doesn’t mean they are good options. However, sometimes they really help but they’re not-so-lucrative as we all think.
Here are a few myths and facts of 0% deals that need to be known by all debtors who are opting for this to pay off their credit card debt.
Myth 1: Balance transfer cards don’t charge interest rates for the transfers
Fact: This is the first myth that is often believed by those who are financially unaware. The balance transfer cards don’t charge an interest on transfers only during the introductory period. All balance transfer cards come with an introductory period during which the interest rate remains 0%. However, after the introductory period is over, the interest rates go through a sudden hike. The introductory period typically lasts from 12 months to 18 months. Beyond the introductory period, the balance transfer card would charge the same interest rate as charged by other cards, or sometimes even more than that.
Myth 2: You can transfer any amount of balance into your new card
Fact: This is perhaps the biggest myth that most people believe about a balance transfer method. People think that no matter whatever amount of credit card debt they’ve incurred, they’ll be able to transfer the balance into a balance transfer card and get rid of interest rates temporarily. However, you must know that most credit card companies allow transfers that don’t surpass 80% of the credit limit of the new card that you’re going for. Thus, you must no longer believe in the myth that any amount of debt can be transferred to a balance transfer card.
Myth 3: The best balance transfer cards are those that have a 0% APR
Fact: Though it is true that the best balance transfer credit cards should come with a 0 % APR, yet there are a number of other factors that must be taken into consideration by the debtors while choosing the best cards. For those who’re new with the balance transfer method, you need to know a lot more factors about the entire process to strike the best deal.
Myth 4: Balance transfers are the key to getting out of credit card debt
Fact: While balance transfers can assist you in getting out of debt, this method shouldn’t be considered as the primary way of eliminating debt. Instead, you must see that the balance transfer method is just another road to financial freedom. You must initially try to manage your personal finances and eliminate your debt burden. If you don’t get desirable results, you may go for a balance transfer method.
Most people mistakenly believe that it’s difficult to get a balance transfer card in the market. However, if you want to choose a balance transfer method as to pay off your credit card debts, then you must shop around in order to get the best and the most affordable cards in the market. Avoid believing in the above-mentioned myths so that you can lead a safe financial life.